Digital economy in the BRICS countries: myth or reality?

Abstract

The article discusses the current situation of the formation and development of the digital economy in the BRICS countries. The comparative analysis of the BRICS countries based on key requirements such as availability and reliability of the data, the possibility of crosscountry comparisons. As comparative techniques analyzed international integrated (composite) codes for up to one scale evaluation plurality of objective and subjective parameters. It has been shown that digitalization has a positive effect on per capita GDP growth only after reaching the distribution and use of ICT at a certain critical point. To obtain a positive response in the economy from digitalization, a certain period is required for organizations and the public to master new technologies and adapt to them. It was found that the ICT index is not yet sufficiently informative to assess the level of welfare since it gives a significant positive impact on the economy with a time lag. An analysis of the components of the telecommunications infrastructure index showed that Russia, Brazil are close to their saturation point, and India, South Africa, and China have very good sources of growth. The e-government development index and the telecommunications infrastructure index showed a high degree of correlation. Used summation method showed that now in Russia a degree of readiness for the formation of the digital economy has reached almost the maximum value, while those of the BRICS countries like China, India and South Africa are still in their infancy, but there are significant advantages to accelerate the digitalization process. For the digital economy to become a reality for all the BRICS countries, serious government measures and large investments are required, both in the development of infrastructure for access to the Internet and in investment in human capital.

The digital rise and its economic implications for China through the Digital Silk Road under the Belt and Road Initiative

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China's Digital Silk Road: The Loss for Indonesia

“…DSR implementation would increase economic growth, improve economic development efficiency, create jobs, and improve people's well-being. It also creates new possibilities for incorporating the notion of long-term economic growth (Lazanyuk & Revinova, 2019). Starting with the intention of enhancing the domestic economic development of China, DSR is the initiative of Xi's administration that is prioritizing the integration of communication services and information sharing (LY, 2020).…”

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